Chapter 11, Problem 3RP

Compute working capital

Please explain the correct approach for solving this financial accounting question.

What is the ending account receivable balance?

Can you help me solve this financial accounting problem with the correct methodology?

None

What is the amount of the ending inventory?

What is the required adjusting entry for bad debt expense?

Carrington Trading is a merchandising company. Last month, the company's cost of goods sold was $72,800. The company's beginning merchandise inventory was $24,500, and its ending merchandise inventory was $21,300. What was the total amount of the company's merchandise purchases for the month?

Please provide the solution to this financial accounting question using proper accounting principles.